
Uruguay’s Central Bank (BCU) cut its benchmark policy rate by 100 basis points to 6.5% and said monetary policy “enters an expansionary phase,” framing the move as a way to prevent inflation from drifting away from its 4.5% target and to respond to recent strains in the foreign-exchange market.

Uruguay’s Public Health Ministry confirmed this week it had detected for the first time two cases of the so called ‘super flu K’ H3N2, both from people returning to the country, a boy who recently arrived from Finland, and a woman who visited next of kin in United States.

Bolivia’s Vice President Edmundo Lara said fugitive Uruguayan drug trafficker Sebastián Marset may be hiding in Urubó, an affluent residential area on the outskirts of Santa Cruz de la Sierra, and urged security forces and Interpol to carry out “urgent” raids to verify the lead. In a video posted on social media, Lara questioned why major operations had not been conducted in the area “for a long time,” suggesting a gap in enforcement that could be shielding the suspect.

Uruguay will deploy a contingent of around 40 firefighters to Chile to help battle the wildfires ravaging the country’s south-central regions—particularly Biobío and Ñuble—where Chilean authorities have reported at least 20 deaths and thousands of people affected.

Uruguayan President Yamandú Orsi expressed disapproval over the absence of Brazilian President Luiz Inácio Lula da Silva during the signing of the landmark free trade agreement between the European Union (EU) and the Mercosur bloc, held in Asunción on January 17.

The European Union and South America’s Mercosur bloc signed their long-negotiated association and free trade agreement on Saturday in Paraguay, with Argentina’s President Javier Milei attending the ceremony and Brazil’s Luiz Inácio Lula da Silva absent, represented instead by his foreign minister.

On January 17, 2026, the Mercosur bloc and the European Union (EU) will formalize a comprehensive association and free trade agreement in Asunción, Paraguay, marking the culmination of nearly 26 years of negotiations, according to international and regional news outlets.

Brazil has enacted two laws formalizing the transfer of military aircraft and equipment to Uruguay and Paraguay, as part of an initiative to upgrade operational capabilities of neighboring countries and enhance regional security, Agência Brasil reported.

Uruguay’s President Yamandú Orsi said he was concerned by Washington’s decision to pause immigrant visa issuance for citizens of 75 countries —including Uruguay— starting January 21, with no end date announced. “In numerical terms it’s not very important, but as a signal it certainly worries us,” Orsi said after meeting US Ambassador Lou Rinaldi at the presidential residence in Montevideo.

The British Broadcasting Corporation has named Uruguay as one of the top 20 travel destinations for the year, ranking it at number 10 globally, minly due to its sustainable alternatives. The South American country was also demed an ideal alternative to crowded global hotspots.